Arbeitspapier

The Impact of Preferential Trade Agreements on the Margins of International Trade

In this paper we consider the trade creating effects of Preferential Trade Agreements (PTAs) for a large sample of countries over the period 1960-2000. The paper builds upon the existing literature by examining whether any significant effects of PTAs occur through a change in the variety of exports (i.e. the extensive margin) or through a change in the volume of existing products (the intensive margin). To address this issue we employ the commonly used gravity equation as well as a matching approach to deal with potential self-selection problems. Our results indicate that exports respond positively to the formation of a PTA between countries, and that much of this increase in exports occurs along the extensive margin. We also show that the gains are strongest for larger trading partners, with again much of the benefits occurring along the extensive margin.

Sprache
Englisch

Erschienen in
Series: wiiw Working Paper ; No. 70

Klassifikation
Wirtschaft
Trade: General
Economic Integration
Thema
preferential trade agreements
intensive and extensive margin
matching
difference-in-difference

Ereignis
Geistige Schöpfung
(wer)
Foster-McGregor, Neil
Pöschl, Johannes
Stehrer, Robert
Ereignis
Veröffentlichung
(wer)
The Vienna Institute for International Economic Studies (wiiw)
(wo)
Vienna
(wann)
2010

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Foster-McGregor, Neil
  • Pöschl, Johannes
  • Stehrer, Robert
  • The Vienna Institute for International Economic Studies (wiiw)

Entstanden

  • 2010

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